Sizing Up Shopping 2011 © 2011 Shepherd. All rights reserved. Any duplication, reproduction or usage of this document or any portion thereof without the.

Sizing Up Shopping 2011

© 2011 Shepherd. All rights reserved. Any duplication, reproduction or usage of this document or any portion thereof without the written consent from Shepherd is prohibited.

Background

•Retailer margins continue to be squeezed by a weak economic recovery, fragile consumer environment and rising cost of goods.

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http://gapinccq01.gap.com:4503/content/gapinc/html/aboutus/ourbusiness.html

Background

•Women are …

oLess impulsive.

oSpending more time on their pre-shop.

oKeeping the pattern adopted over last two years – they’re more frugal at checkout.

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Background

•They’re still more loyal to sales than retailers.

oHardwired to expect lower prices.

oNo stigma about bargain hunting.

•Value continues to drive shopping decisions.

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Background

•Technology fuels empowerment.

oSearching, browsing and buying online.

oOnline reviews influence purchase.

oSocial media create connections.

oMobile apps allow comparisons, offer discounts and promotions.

oYouTube videos engage.

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Background

•Predicting the future, even short term, is murky at best.

oHigh unemployment, high food and gas prices, falling home values, confound economic recovery.

•More affluent consumers return to pre-recession habits, others adopt “forever frugal” mentality.

•Retailers must use smart marketing to deliver value to consumers while remaining profitable.

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The Research

Sizing Up ShoppingResearch, Summer 2011

• Online Quantitative Survey- 153 completes

• Organic Research- 25 field interviews

Uncovers:oWhere and how they shop for apparel and accessories

today.oHow their shopping compares to a year ago.o The impact of price today.oWhat most influences their store preference.o Their pain points and how you can address them.

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Key Findings: Online

Key Findings – Apparel and Accessories

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• 5 in 10 women are shopping about the same, while 1/3 say less than last year.

• Price influences buying somewhat to much more.


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• Clothes shopping is planned. Just 3 in 10 are impulse buyers.

• 6 in 10 are impulse buyers for accessories.


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• For apparel, women shop first for style, then price, then fit.

• For accessories: it’s style, then price.


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• Fashion preference is most influenced by these channels:

oWOM

oOnline search

oStore flyer or catalog

• Store preference is most influenced by:

oWOM

oCoupons: Online &/or email

oEmails from a store


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• What women want most in a store:

• The right style at the right price with a great fit.

• The challenge:

• Finding a store like this.

• With many stores, clothes and styles and sizes, the task is daunting – even if you know what you are looking for.


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• No wonder 2/3 of women shop a couple of stores. ¼ shop MANY stores

• 6 out of10 shop a different store for accessories.


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• Women shop any combination of store types:

oHigh end stores and boutiques

oDepartment Stores

o Specialty Stores

o Local Independent boutiques

oOff-price stores

oDiscount stores

oConsignment and/or thrift stores

http://www.loft.com/loft/common/home.jsp

http://shop.nordstrom.com/?origin=tab-logo


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1. Off-price stores (48%) and department stores (48%).

2. Specialty Stores (43%)

Followed by Local Boutiques (37%) and Discount stores (36%).

• The three types shopped most were:


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o 89 different stores were mentioned and 17 different websites.

• Asked the store they shopped most recently,…


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1. Shoes

2. Dress

3. Blouse

Followed by: Tee’s, Jewelry

& Jeans.

• Most mentioned recent purchases were:


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• Mobile is starting to catch on…

oOnly 1 out of 10 use their mobile phone to compare prices and styles while they shop.

• Women compare prices, styles online and in stores before they buy.

• Most buy in the store rather than online.

• But 4 out of 10 do both.


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− Great sales = “Great deals on a wide variety of things in my size.”

− Great prices/coupons and discounts = “I won’t feel guilty about it.”

− Clothes and accessories I like = “Styles that look good on me.”

• Women are more likely to shop your store if you have “great sales, coupons and discounts/great prices on the clothes and accessories they like.”


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− Don’t’ hover, stalk, hound.

− Don’t be pushy, annoying, clingy.

− Give me space.

− Be prompt, courteous, knowledgeable, attentive.

− Start a dressing room for me.

− Help me with sizing.

− Check on me to see if I need more help.

• Women want help when they shop.

o 8 out of 10 want accessible, friendly help, but …


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o Customer service is lacking these days.

o Most are more concerned about chatting with each other than paying attention to shoppers.

o I don’t expect much, but wanted more help finding items b/c I was in a hurry.

o I wanted help putting together outfits b/c I’m clueless how to make today’s trends work on my body.

• Perceptions of service staff are almost automatically negative.

Observations

Observations

With current fashion trends, the emphasis is on 1) self expression 2) the awareness and importance of style 3) authenticity

• The styles you have are more important than ever.

Observations

Women are still looking for permission to buy.

• Retailers have an opportunity to capitalize on it.

ObservationsShopping can be overwhelming, online and instore, with hundreds of styles.

Women shop a couple of stores. Some many stores.

• You need to be on their short list.

ObservationsWomen’s opinions about a store are

based on their last visit &/or heavily influenced by WOM.

• Perceptions are based on experience.

• Today’s retail winners:

• Continually improve customer service

• Make their stores convenient, compelling and easy to navigate.

Organic Research

Organic ResearchWhat are Shoppers thinking and feeling right now?

• We spent time with 25 women to find out.

• Here are some of the women we talked with.

The Twenty-Something’s

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Brittany, 20sI love the idea of getting new things, wearing

something new. I’m a poor college student so I have to find nice clothes on a budget.

I like Express, Banana Republic. I love Gap. They’re always having sales and coupons. I just used a monthly Express coupon shopping with my mom for $50 off $100. They also do $75 off $200, I think. Banana Republic sends out 10% off coupons too.

Express has a great line of necklaces and jewelry. The necklace I’m wearing right now is from Banana Republic. I bought it at their Outlet store.

I usually shop with my mom. What supposed to take an hour takes 6. I’m exhausted when I get home.

I would never shop at Walmart, JC Penney, Kmart. The quality isn’t as good. I know some say people buy clothes just for the brand names but I’ve bought cheaper clothes. I’ve found more expensive clothes to be a better quality.

My closet? Mostly I have casual outfits for school with some business casual for interviews.

Brooke, 20s

If I find something perfect on sale, I have to buy it. I love coupons. I always have them with me when I shop.

My favorites are Target, Banana Republic and Ann Taylor Loft. They’re stylish, affordable with very good sales. You get classic looks and new fun lines. I’ll also go to Gap, Old Navy, Stein Mart, and Marshalls.

I LOVE accessories. For great costume jewelry, I shop Stein Mart, Forever 21, Private Gallery. It’s so inexpensive. Sometimes I find good sales on jewelry at J. Crew or Ann Taylor Loft.

I hate when I can’t find what I’m looking for or I can’t find my size. And I hate it if I really don’t need it or if what I thought I’d love isn’t flattering.

I’d never shop at J.C. Penney and Sears. Their clothes are old fashioned; the stores feel gross sometimes. Although Penney’s new ads in all the magazines make them look more appealing.

My Closet? There’s a lot from J Crew Outlet, cardigans, sun dresses, some Lilly Pulitzer items I got on sale at Dillard's and designer things from Target and Marshalls.

Anna, 20s

I love shopping when I get a great deal on a brand name on sale or with a coupon. Or, I find something

that really fits the exact event I am buying for.

I love the quality and classic style of J. Crew clothes and the affordability and trendier styles of Target, Express and Forever 21.

I shop for accessories at Forever 21 and Private Gallery. It’s the best place to find jewelry I don’t worry about losing. They have unique styles. Forever 21 is good for clothes too. If I wear something once or twice, I don’t care if it gets ruined afterwards. I got my money’s worth.

I hate when stores have limited choices and no sales.

I would never shop at stores like Hot Topic. Their products are nowhere near the style I am trying to achieve.

Amanda, 20sI like finding good deals, things that fit and are flattering on me that don’t have to be altered.

I love to shop at Macy’s, Forever 21, Target, Nordstrom Rack and TJ Maxx/Marshall’s type stores. The clothes are good and they usually have sales.

It doesn’t matter if I buy clothes in cheaper stores and get rid of them because I didn’t spend too much. I recently went to Target because they have a great casual workplace section. I buy dresses, cardigans and pants from the Merona label for work.

I buy accessories at Forever 21. I just want fun things – and I’m really not as good with picking out accessories.

I hate crowded stores and malls – and especially hate shopping on the weekends. All of the merchandise is picked over by then.

I don’t really like Wet Seal – their clothes are pretty tacky and fall apart.

The Twenty-Something’s

“Shopping is fun when you find something at a great price.”

oWith fewer family demands, they love shopping and shop more often.

oThey want current styles.

oThey’re still on a budget so they look for sales, discounts and coupons.

oValue: quality equal to the price I’m paying.

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The Thirty-Something’s

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Kristen, 30sI don’t like ‘the work’ of shopping. That’s

why I pick stores where outfits are put together for you, like Ann Taylor Loft.

I don’t have a lot of time.

I like the idea I’m getting something new and how I feel when I have a new outfit on. When I can afford it, my favorite place to shop is Nordstrom's.

Recently I went to Ann Taylor Loft, White House/Black Market, Forever 21 and Banana Republic. I usually buy my accessories at the same store to go with the clothes I bought.

I wouldn’t shop at Sears. My perception is they don’t have nice stuff. I think of Sears and see tools and washing machines, not clothes.

My Closet? Well, it’s more organized since I moved. I have separates, like a black pant I can wear with multiple tops so it looks like a new outfit.

Honey, 30sShopping is good old-fashioned retail therapy. I love finding something new,

wearing it and feeling pretty.

I like mall stores like Ann Taylor Loft, New York & Company and mall stores like Nordstrom's and Macy’s – the basics. I generally get my accessories at the same time.

My favorite store is Ann Taylor Loft.

When I’m on a budget, I go to discount stores like Marshalls and TJ Maxx. I hate having to dig around sales but I am a sale-driven shopper. It’s invigorating and frustrating at the same time. Frustrating to look but a win when I do find something good at a sale price.

I never shop at Saks Fifth Avenue because I can’t afford it. I know I don’t want to spend that kind of money on clothes.

My Closet? I’m an organization freak so I’ve have it organized by color and type with work/church dresses, tops then pants/capris after that.

Raquel, 30sI love finding great buys and just feeling pretty when you wear something new. I hate not finding something that fits me.

My favorite place to shop is Macy’s. I like the variety and their sales. I like accessories from Ann Taylor Loft, Macy’s, and Target.

Recently I shopped at Macy’s because I like to see the selection they have and see what the trends are for the next season.

I would never shop for clothes at Sears or JC Penney. I like to look for quality clothing at a reasonable price. I’ve shopped Old Navy but two washes later you can’t wear it anymore. So I’d rather get something that will be long term.

My Closet? It needs help. I would love to get a new wardrobe. I’ve got staple items I try to liven it up with accessories, but I’d like to incorporate more color into my wardrobe.

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Lindsey, 30s I like the excitement of getting something new. I hate seeing things I want but can’t

afford.

My favorite places to shop for clothes are Gap, Target, Old Navy, J. Crew and Ann Taylor Loft.

I’ve been to Gap, Old Navy and Target recently because they were having good sales.

I don’t buy many accessories. But Target and Kohl's have some good cheap jewelry.

I would never shop at Walmart. Why? Lack of quality.

My closet? It goes from really organized to completely disorganized to reorganized again. I have mostly work clothes, business casual, and some sun dresses.

The Thirty-Something’s

“Love new clothes and sales but shopping can be work.”

oWith demands of work, home, marriage, family, etc., they have less time to shop.

−Sales makes them feel better about spending money.

−Stores that display whole outfits saves them time.

−Value: getting good deals on the stylish clothes. They don’t have to be expensive.

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The Forties-Fifties-Something’s

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Kathie, 40sWhat I love about shopping is convenience,

ease. What I hate about shopping is the inside of malls.

I like Macy’s, Nordstrom's, Ann Taylor Loft. I get accessories at James Avery Jewelry and Nordstrom's.

I’ve actually been cutting back a lot lately, but I’ve been to Macy’s and Ann Taylor Loft most recently.

I would never shop at Belk. I’m not crazy about the brand. Their stores don’t have a good impression with me. Poor quality.

My Closet?: Packed. I need more room!

The Forties & Fifties

“Love finding clothes that look good on me but it’s stressful”

oThey’re least confident about current fashion.

oStores styles are either too young or too old.

oFinding good styles that fit is a real challenge.

oThey love sales but will spend more on the perfect outfit.

oThey hate crowds and love convenience.

oValue: getting good deals on flattering clothes that fit.

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Insights

Pain Points

Love/hate relationship with shopping is about the experience.

o I can’t find anything I like. There’s too little/too much stuff.

o It’s takes too long. I have to try several stores/sites.

o Nothing fits. It has to be altered.

oSize is guesswork.

oTrying on clothes is depressing, exhausting.

oPicked-over merchandise feels dirty, hopeless.

oDressing rooms are awful.

oCrowded stores, malls and parking lots are a headache.

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Pain Points

Love/hate relationship with shopping is about the experience.

oStore sales people

−Are MIA.

−Are too busy working with each other or the merchandise.

−Make me uncomfortable the minute I walk in.

−Are stalkers.

−Aren’t helpful. ‘Everything looks great on you’ regardless.

−Are just trying to make a commission. You can’t trust their motives.

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Insights

Buying behavior is more complex than ever.

•All generations are the most informed shoppers ever.

•They are well-researched, hyper-connected, social and demanding.

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Insights

Getting women to try your store or site may be the hardest part.

•Concerns about savings, debt, jobs and the global economy continue to impact shopping behavior.

•Women comparison shop and aggressively look for sales.

•Value today is a mix of style, quality, price and service.

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Insights

WOM is a huge opportunity

•When customers tell friends their shopping experience was great, those friends are most likely to give you a try.

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Insights

Women want to be noticed.

•To be stylish, pretty, beautiful, fashionable, etc.

•To express themselves.

•When they can’t find what they’re looking for, they internalize the experience. “There must be something wrong with me” and “there ‘s something wrong with the store.”

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Insights

New clothes are a “high”.

•Flattering clothes grow a woman’s confidence.

•“Personally authentic” styles blending in latest trends are very appealing.

•Getting a great deal makes a woman feel smart. It’s permission.

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Insights

“Optimism” is a category driver. It’s all about success.

•Going shopping, women want to believe they will find something.

•Finding something easily is powerful.

o It increases additional store/site purchases.

oWomen tell others about their success.

•Women return to stores/sites where they’ve been successful. Women try stores/sites where their friends were successful.

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Insights

Helping women be successful is a retail opportunity.

•Displaying finished outfits builds women’s confidence and saves them time.

•Having “someone who can advise me, suggest things, is knowledgeable and understands my body type” is desirable.

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Change the Experience

Making Shopping Magical

Create a contagious experience where it’s easy to be successful and get a good deal… in one visit.

1. Styles: Good selection, “authentic styles” blend current trends.

2. Store Layout: Intuitive, fun, relaxed.• Easy to navigate.• “Complete outfits” displayed.• Easy to find prices, sales, promos,

clearance.• Comfortable dressing rooms.• Leverage technology.

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Create a contagious experience where it’s easy to be successful and get a good deal… in one visit.

3. Stylists not salespeople.• Friendly, welcoming. Let them browse. • Listen, advise, suggest, recommend. • Are helpful. proactive.

4. Reward customers instore and online to grow loyalty.

5. Communicate the experience through your marketing, promotions, coupons, emails.

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Create a contagious experience where it’s easy to be successful … online too.

6. Site with style• Attractive, uncluttered site.• Easy, intuitive search.• Customer reviews. • Easy, knowledgeable assistance via help/chat,

email, etc. 7. Seamless customer experience online to

instore. And vice versa.8. Relevant online engagement that grows

loyalty. Via email, social media, mobile.

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Create a contagious experience where it’s easy to be successful … online too.

6. Site with style• Attractive, uncluttered site.• Easy, intuitive search.• Customer reviews. • Easy, knowledgeable assistance via help/chat,

email, etc. 7. Seamless customer experience online to

instore. And vice versa.8. Relevant online engagement that grows

loyalty. Via email, social media, mobile.

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Recommendation Nordstrom

Five Tips for Generation C*“I share, and therefore I am”

•Keep it relevant, useful and entertaining

•Enhance social status within “community”

•Ask for a reaction and have a fun social interface

•Connect Gen C members with each other, not just with a brand

•Enable Gen C to participate in, play with or produce themselves and pass on

Source: From Nielsen’s Consumer 360 Indonesia conference presentation by Dan Pankraz, Planning Director/Youth Strategist, DDB Sydney

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Nordstrom Slides to come

Sizing Up ShoppingJune 2011

Sizing Up Shopping 2011 © 2011 Shepherd. All rights reserved. Any duplication, reproduction or usage of this document or any portion thereof without the.

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